As collateral security for a Law Firm loan, BridgePoint requires borrowers to temporarily "assign" to BridgePoint their entitlement to legal fees and the reimbursement of disbursements on a file or group of files. The number of files required to be included in the assignment depends on the size of the loan, and how much "credit value" is attributed to the underlying file(s) being assigned.

Subject to certain exceptions, a file's credit value is generally equivalent to the value of its outstanding disbursements. BridgePoint does not attribute credit value for unrealized legal fees on assigned files (though these do form part of our security).

Of note, our Law Firm Loan assignment process does not in any way compromise, impair, or otherwise affect the financial interest of the plaintiffs themselves in their claims. Each Law Firm loan is secured by amounts ultimately payable to the lawyer/law firm for the subject assigned file(s), not amounts paid to the plaintiff clients for those same files. As a result, we do not require any signature, guarantee or acknowledgement from our borrowers' clients. In fact, the entire Law Firm Lending process is an invisible one from the plaintiff's perspective.

For additional information on how our collateral security works for various law firm lending scenarios, including specific examples, please contact a BridgePoint representative.